Brekkie on a Budget: Breakfast Restaurant Startup Costs

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Introduction

Breakfast restaurants have seen impressive growth over the past few years. According to the National Restaurant Association, the industry is the fastest growing type of restaurant in the United States, growing 3.4% in 2019. With more people looking for breakfast options , opening a breakfast is an opportunity to give breakfast lovers something unique and tasty.

However, it is important to do your research and understand the costs associated with opening a breakfast. The expenses of opening a restaurant can be significant, covering everything from renting the property to buying kitchen equipment and supplies. Before diving into the investment of starting a breakfast, it is essential to know what costs you need to cover.

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start-up costs

When you start a breakfast catering business, there are many costs. A full list of startup costs with ranges of average USD amounts is provided below.

Cost Amount
Lease of property or land ,000 to ,000
Building cost ,000 to 0,000
Architectural license and others 0 to ,000
kitchen equipment ,000 to ,000
Toilet accessories 0 to ,500
Furniture and accessories ,000 to ,000
restaurant sign 0 to ,000
Computer systems, software and pos ,500 to ,000
Inventory and food supply ,000 to ,000
Total 5,500 to 2,500

Lease of property or land

The cost to open and launch a breakfast restaurant can be affected by the lease price you have to pay for the property or land. The rent rate you must pay varies across the states. According to the US Census Bureau, in 2017 the six states with the highest rental costs of property or land were: California (.35 per square foot), New York (.76 per square foot), Hawaii (.71 per square foot), Oregon (.43 per square foot), Massachusetts (.19 per square foot), and Virginia (.64 per square foot). These rates reflect property value, restaurant location and other market factors.

Before signing a rental agreement, it is important to understand the terms and conditions of the rental agreement. A restaurant lease can cover things like:

  • Lease Length: The length of the lease will also affect the monthly lease cost you need to pay.
  • Extendable or not: Does the lease give you the option to extend it or is it fixed?
  • Sublease Permission: Can you sublease permission to someone else to operate the restaurant?
  • Damage Reimbursement: Are you responsible for damage to property or land?
  • Renovations allowed: Are you allowed to do renovations on the property or land?
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In addition to the cost of the lease, you also need to consider the additional costs associated with operating the restaurant. This includes costs such as furniture and fixtures, licenses and permits, labor costs, and other operational costs.

Building cost

When deciding to open a breakfast restaurant, it is important to consider the cost of the building. These can vary greatly depending on the type and size of the restaurant, but some costs are always present, such as rent, insurance and renovation. Here’s a quick breakdown of what you can expect to spend on building costs when starting a breakfast restaurant.

Rent: Rent can quickly become a major expense. If you’re starting a breakfast in an already existing space, like a hotel or mall, you can expect to pay at least ,000 to ,000 per month. If you’re opening a new space, the costs can be ,000 to ,000 higher per month.

Insurance: Every business needs insurance, and a breakfast restaurant may have unique insurance needs. Depending on the size and type of restaurant, you can expect to pay anywhere from 0 to ,000 per year for coverage.

Renovation: Often the building you choose for a breakfast restaurant will require renovations to make it suitable for operation. This can vary widely, but some common costs to consider are new appliances, flooring, walls, and furniture. On average, you can expect to spend between ,000 and ,000 to open a breakfast.

Permits and Licenses: Every business needs permits and licenses, and a breakfast restaurant is no exception. Depending on your experience, you may be able to obtain them yourself, or you may need to hire a lawyer or accountant. You can expect to pay anywhere from a few hundred dollars to a few thousand dollars to acquire the necessary permits and licenses to open a breakfast restaurant.

Architectural license and others

Opening a breakfast establishment requires going through a number of legal requirements and obtaining several licenses. These include various local, state and federal licenses as well as architectural permits. The cost of these permits and licenses can vary greatly depending on the city and state in which you are opening your restaurant and the requirements of the business.

Local permits and licenses
Depending on the municipality in which you operate, you will likely need to obtain various local permits. This may include event day permits, entertainment permits, and signage approvals. Additionally, most regions require restaurants to have a food service license to operate. The cost of all permits and licenses will vary from city to city and will largely depend on the type of business you are using.

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State licensing requirements
Most states will require restaurants to obtain a food service license before they can open. The cost of the license will vary from state to state, but will typically cost 0 to 0. Other licenses may be required by the state if your business serves alcohol, hosts entertainment, or sells tobacco products. Additionally, many states also require restaurant health inspections and periodic proof of insurance.

Federal license requirements
You may need to obtain a Federal Employer Identification Number (EIN) in order to pay employees and manage taxes. The EIN is free and can be easily obtained online. Additionally, your restaurant may need to obtain a Federal Food Service Sanitarans (FFSS) certificate. This license certifies that the restaurant meets federal food safety and food safety guidelines. The cost of getting an FFSS can vary, but can typically range from 0 to 0.

Architectural permits
In order to make changes to a building before it can be used for commercial purposes, such as renovating a space for a restaurant, you will need to apply for and obtain an architectural permit. The cost of this permit depends on the type of work you are doing and the area you are in. On average, the cost of an architectural permit for a restaurant can range from 0 to 00 USD.

kitchen equipment

Opening and launching a successful breakfast establishment requires a reliable, up-to-date kitchen well equipped to handle the demands of a typical breakfast service. The main kitchen equipment costs will depend on the size and modernity of a kitchen needed. Traditional breakfast restaurants need amenities like counter pads, chips, and ovens as well as dishwashers, refrigerators, and freezers.

For more modern breakfast restaurants, high-end appliances like stovetops, salamander grills, specialty ovens, and induction hobs make a difference in the kitchen. Prices for these devices range from ,000 and up. Professional ranges with pans can range from ,500 to ,500 depending on the model, while a commercial dishwasher can go up to ,000.

For a more complete list of kitchen equipment to launch a successful restaurant, it will also include:

  • Food Preparation Equipment: Commercial blenders, mixers, and cutters are essential for any restaurant’s kitchen. Prices for these range from 0 to ,500 depending on the size and brand.
  • Storage Equipment: A range of refrigeration and plastic storage options will help contain food and kitchen ingredients. Prices for such equipment range from 0 to ,000.
  • Kitchen equipment: Grills and fryers are very useful for a breakfast restaurant. Prices for such equipment range from ,000 to ,000.
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The total cost of kitchen equipment for a breakfast restaurant, depending on the size and scale of the restaurant, can range from ,000 to ,000.

Toilet accessories

When deciding to open a breakfast restaurant, it is important to consider the expense of bathroom fixtures. These can be one of the costliest expenses you will need to consider, so it is important to consider your budget before buying them.

The average cost of bathroom fixtures for a small restaurant in the United States is around ,500. This includes mirrors, paper towels and soap dispensers, shower curtains and rods, and other decorative pieces. If you are looking to install larger toilet fixtures, such as urinals and sinks, the costs will be significantly higher.

If you want to save money on toilet accessories, you can opt for lower quality materials in certain areas. For example, you can use plastic instead of metal for towel rails and toilet holders. Plus, you may be able to find discounts when buying in bulk.

However, if you’re looking for high-quality products that will last longer and improve the overall look of your toilet, you might want to splurge a little more. For example, toilets, sinks, and urinals can cost anywhere from 0 to ,000. Also, you’ll want to keep in mind that you’ll need to replace your idle fan’s air filters every six months to a year, which can range from to per filter.

Finally, if you’re looking for ways to further personalize your restroom, you might want to consider wall art, accent pieces, and plants. These items should not be too expensive; You can find affordable pieces for decorating at places like thrift stores and discount stores.

Furniture and accessories

Opening a breakfast room involves the costs of purchasing items such as furniture and fixtures. According to the US Small Business Administration, small restaurant owners should anticipate spending between ,000 and ,000 on furniture and fixtures depending on the price and quantity of furniture purchased. Additional estimates from Statista Research Lab place the cost of equipment and furniture for commercial catering equipment on average ,919 .

When it comes to providing a restaurant for breakfast, there are many choices available to restaurant owners. Basic furniture such as tables, chairs, and bar stools can be purchased from various vendors and department stores. However, if a more fashionable or iconic look is desired, custom designed furniture may be a better choice. Custom-designed furniture can add significantly to the overall cost, so restaurant owners should carefully consider their budget and needs before making a decision.

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Additionally, some basic fixtures may need to be purchased, such as cutlery, plates, cups, and glasses. Quality cutlery and dishes can range in price from very cheap to expensive, depending on the look you want. Replacement dishes and cutlery should also be factored into the total cost of furniture and fixtures.

It’s also important to consider durable items such as countertops, which will need to be able to withstand the heat of dishes, sinks, and other items found in the kitchen. Quality counters can be an expensive purchase and account for a significant portion of the total furniture and fixture cost. Other fixtures such as light fixtures and decorations must be added to the cost of reaching a restaurant for breakfast.

restaurant sign

Gaining visibility for your restaurant is a key success factor, so having a prominent and eye-catching sign is a must. Depending on the size and type of sign needed for your business, prices may vary. Generally, the smaller the sign, the less it will cost, but the costs can add up quickly. For example, a small plastic menu board for your business may cost a few hundred dollars, while a large illuminated sign may cost thousands. The exact costs for your particular sign needs depend on the type of materials used, style of lettering, size of the sign, complexity of the design, and even permission fees.

Costs for the signs component of a restaurant opening can range from ,000 to ,000, according to recent statistical information in US dollars. A low cost option is around 00-00, while a more complex back light will generally be around 00-00. In the end, you may end up with a panel that costs around ,000-,000, depending on its complexity.

In addition to the cost of the panel itself, the cost of installation must be considered. Signs placed next to an existing building can have an installation cost of 0 to ,000, while signs installed on an additional pole or post can run from ,500 to ,000, depending on the size and complexity of the installation. Professional installation will be required for many signs, especially larger signs which must be placed securely on the post or post. Also, permits for large signs or signs in certain areas may require an additional fee.

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Although the cost of a restaurant sign may seem significant, it is a significant investment in the visibility and success of your business. Fortunately, there may be ways to find more affordable materials and methods, such as using LED neon letters instead of a large lighted sign. Ultimately, you may need to consider all of the options and their associated costs to decide which is best for your business.

Computer systems software and POS

When looking to open a breakfast restaurant, one of the biggest expenses you will incur is the cost of software and POS systems. The cost of these systems can vary greatly depending on the features you need, but the latest statistics show that the average start-up cost in the United States is around ,000.

These systems offer a variety of features, such as inventory management, accounting, customer relationship management, loyalty programs, cash register systems, data analysis, and more.

Inventory Management: Inventory management can help you save time and effort managing ordering, restocking, and tracking inventory for your breakfast restaurant. This system can help keep your inventory organized, accurate and up to date.

Accounting: Accounting software can help you track your budget, expenses, and income. It can also generate sales, profit, and loss reports, so you can better understand your restaurant’s financial health.

Customer relationship management: Customer relationship management (CRM) can help you track customer data, track customer interactions, and manage loyalty programs. This software can help you better engage with your customers, leading to higher customer retention.

Loyalty programs: Many customers prefer rewards programs that give them discounts or other incentives to return to your breakfast restaurant regularly. Loyalty programs can be used to reward customers with discounts, free items, or other incentives.

Cash register systems: Cash register systems are an essential part of any catering business. These systems are designed to process orders, provide customers with receipts, and track sales information.

Data Analysis: Data analysis can help you track customer trends and sales information. This data can help you make informed decisions about your business model, menu offerings, and marketing strategies.

Inventory and food supply

Before you can launch your breakfast restaurant, you need to consider the costs associated with your inventory and food. Start-up costs vary greatly from business to business, so let’s break down the various costs you might incur in the steps leading up to your restaurant’s grand opening.

Estimate your inventory and food supply requirements

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Your inventory and food supply are the backbone of your catering business and the food it serves. It costs money to stock your kitchen with all the necessary ingredients, as well as the equipment and utensils required in order to prepare and serve breakfast meals. To ensure that you always have the right quantities of supplies, you must accurately estimate your consumption rate and therefore your inventory needs.

The National Restaurant Association estimates that the cost of food and beverages, as well as non-food supplies for small restaurants (defined as those with annual revenues of -10 million) typically ranges from 25% to 35% of total sales of the establishment. This suggests that inventory and food supply costs are among the highest expenses most restaurants face.

According to the 2012 Retail Trade Census, US-owned hotels, cafeterias and restaurants cumulatively reported spending a total of 2.2 billion on inventory in their last year of data. (2012). This gives an overall average of ,200 per institution.

Inventory and Food Supply Cost Considerations

When opening a breakfast restaurant, your inventory and food supply costs may include items such as:

  • Ingredients
  • Cooking tools
  • Utensils
  • Service and storage equipment
  • cleaning supplies
  • Operating costs for refrigerators and freezers

These items can range from a few hundred dollars to thousands of dollars depending on the size and scope of your restaurant. It’s important to carefully consider the type and amount of inventory and food supplies your restaurant will need to run smoothly. If you underestimate the amount of food supplies needed, you could potentially lose sales due to shortages in popular items or running out of ingredients mid-meal.

In sum, the costs associated with storing your inventory and food supply are an important factor to consider when planning the launch of your restaurant. With the right amount of research, planning, and budgeting, you can effectively manage these costs and have a successful opening without going over budget.

Conclusion

In conclusion, opening a breakfast can be an expensive business. Your budget should cover property or land lease, construction costs, licenses, kitchen equipment, washroom fixtures, furniture and fixtures, a restaurant sign, computer systems and software, and food inventory and supply. Depending on the size, location, and concept of your restaurant, the cost to open a breakfast can range from ,000 to 0,000 or more. If you have the resources and passion to open a breakfast restaurant, be sure to plan your budget accordingly and research all the costs associated with starting a restaurant.